Effect Of Tax Incentive On Foreign Direct Investment On Pertroleum Upstream Sector (A Case Study Of Shell Development Company)

UDOCHI OGADINMA MOUAU/ACC/14/22895 | 66 pages (11747 words) | Projects

ABSTRACT

The work was on the impact  of taxation on foreign direct investment in Nigeria (1970-2009),  dealing with  secondary  data from the Shell Petroleum Development Company (SPDC) and the National Bureau of Statistics. Regression analysis with (OLS) technique was used. Our findings indicate that there is a positive correlation between government expenditure, manufacturing output, inflation and foreign direct investment (FDI).   Petroleum   represents  a  very  important  mineral   in  Nigeria  economy. The economic well-being of the citizenry is now completely dependent on petroleum.  This means that petroleum touches every facet of human life in Nigeria. However, company tax was negatively  correlated.  Based on these findings, we found out that taxation has contributed insignificantly to foreign direct investment (FDI) and therefore recommend that,  government  intensifies   efforts  towards  positive  fiscal  policy  reform   by encouraging  foreign direct investment (FDI) through low  corporate tax  rates and identify  and  implement   instruments  including control  of inflation  that  encourage

foreign direct investment. 


TABLE  OF CONTENTS

TITLE PAGE

CERTIFICATION 

DECLARATION

 DEDICATION 

ACKNOWLEDGEMENTS

TABLE  OF CONTENTS

 LIST OF TABLES

 ABSTRACT


CHAPTER ONE: INTRODUCTION

1.1     Background  to the study                                                                                 1

1.2      Statement  of problem                                                                                      3

1.3     Objectives  of the study                                                                                   4

1.4     Research  questions                                                                                          4

1.5     Research  hypothesis                                                                                        4

1.6     Significance  of the study                                                                                5

1.7     Scope of the study                                                                                           5

1.8     Definition  of terms                                                                                          6

1.9     Historical  background  of shell petroleum  development Company           7


CHAPTER TWO:REVIEWOF RELATED LITERATURE

2.1 Conceptual  Framework 10

2.1.1 Incentives  put in place 11

2.1.2 Reduced  Petroleum  Profit Tax for Marginal Field Operators 12

2.1.3 Reduced  Royalty  Rate. 12

2.1.4 Gas Utilization  Incentive 13

2.1.5 Need for Tax incentives 13

2.1.6 Investment  Opportunities in th e Oil and Ga s Sect r 15

2.1.7  Tax incentives  available  to oil and Gas sector in Nigeria                          17 

2.1.8Incentives  and Allowances  Accruable  to the IOCs                         21

2.1.9Investment  Tax Allowance/Tax Credit                                             2

2.2Theoretical  Framework                                                                        25

2.2.1Benefit  Theory                                                                                      26

2.2.2The Cost of Service Theory                                                                27

2.2.3Ability to Pay Theory                                                                          27

2.2.4             Proportionate   Principle                                                                        29

23                Empirical  framework                                                                           30


CHAPTER THREE:  RESEARCH  METHODOLOGY

3.1      Research  design                                                                                               37

3.2      Area of the study                                                                                             3

3.3       Sources of data collection                                                                               39

3.4     Model  Specification                                                                                         39

3.5     Method  of data analysis                                                                                  42


CHAPTER FOUR:  DATA  PRESENTATION,  ANALYSIS, AND DISCUSSION OF RESULTS

4.1     Data presentation                                                                                             44

4.2       Data Analysis                                                                                                   48

4.3     Test of Hypothesis                                                                                           51

4.4     Discussion  of findings                                                                                    52


CHAPTER FIVE:            SUMMARY, CONCLUSION, AND RECOMMENDATIONS

5.1      Summary  of findings                                                                                       53

5.2       Conclusion                                                                                                        54

5.3    Recommendation                                                                                              54


REFERENCES 


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APA

UDOCHI, M (2020). Effect Of Tax Incentive On Foreign Direct Investment On Pertroleum Upstream Sector (A Case Study Of Shell Development Company). Mouau.afribary.org: Retrieved Oct 30, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-tax-incentive-on-foreign-direct-investment-on-pertroleum-upstream-sector-a-case-study-of-shell-development-company

MLA 8th

MOUAU/ACC/14/22895, UDOCHI. "Effect Of Tax Incentive On Foreign Direct Investment On Pertroleum Upstream Sector (A Case Study Of Shell Development Company)" Mouau.afribary.org. Mouau.afribary.org, 29 May. 2020, https://repository.mouau.edu.ng/work/view/effect-of-tax-incentive-on-foreign-direct-investment-on-pertroleum-upstream-sector-a-case-study-of-shell-development-company. Accessed 30 Oct. 2024.

MLA7

MOUAU/ACC/14/22895, UDOCHI. "Effect Of Tax Incentive On Foreign Direct Investment On Pertroleum Upstream Sector (A Case Study Of Shell Development Company)". Mouau.afribary.org, Mouau.afribary.org, 29 May. 2020. Web. 30 Oct. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-tax-incentive-on-foreign-direct-investment-on-pertroleum-upstream-sector-a-case-study-of-shell-development-company >.

Chicago

MOUAU/ACC/14/22895, UDOCHI. "Effect Of Tax Incentive On Foreign Direct Investment On Pertroleum Upstream Sector (A Case Study Of Shell Development Company)" Mouau.afribary.org (2020). Accessed 30 Oct. 2024. https://repository.mouau.edu.ng/work/view/effect-of-tax-incentive-on-foreign-direct-investment-on-pertroleum-upstream-sector-a-case-study-of-shell-development-company

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